Exceeding Expectations in Q1 2025
First Advantage's first quarter revenues exceeded expectations, with $355 million in revenue, nearly flat compared to last year on a pro forma basis. Adjusted EBITDA was $92 million, with a margin of 26%, up approximately 200 basis points year-over-year.
Successful Integration and Synergy Achievement
The integration of the $2.2 billion Sterling acquisition is on track, with $37 million in run rate synergies actioned, exceeding the enhanced objective of achieving 50% of the target in the first six months post-closing.
Record Bookings and Strong Sales Pipeline
14 enterprise bookings in Q1, with 78 in the last 12 months, each with $500,000 or more of expected annual contract value. The total value of these deals represented a record quarter, driven by increasing average deal size.
High Customer Retention
Customer retention remained high at 96%, showcasing effective customer retention strategies amid the integration process.
Innovative Technology Implementations
Implemented AI agents in the automation of criminal records processing, increasing speed from minutes per task to nearly instantaneous and reducing manual touches.